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Replication data for: Capital Income Taxes with Heterogeneous Discount Rates

Resource Type
  • Diamond, Peter
  • Spinnewijn, Johannes
Publication Date
  • Abstract

    With heterogeneity in both skills and discount factors, the Atkinson- Stiglitz theorem that savings should not be taxed does not hold. In a model with heterogeneity of preferences at each earnings level, introducing a savings tax on high earners or a savings subsidy on low earners increases welfare, regardless of the correlation between ability and discount factor. Extending Emmanuel Saez (2002), a uniform savings tax increases welfare if that correlation is sufficiently high. Key for the results is that types who value future consumption less are more tempted by a lower paid job. Some optimal tax results and empirical evidence are presented. (JEL D14, H21, H24)
  • Is supplement to
    DOI: 10.1257/pol.3.4.52 (Text)
  • Diamond, Peter, and Johannes Spinnewijn. “Capital Income Taxes with Heterogeneous Discount Rates.” American Economic Journal: Economic Policy 3, no. 4 (November 2011): 52–76.
    • ID: 10.1257/pol.3.4.52 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-08

Diamond, Peter; Spinnewijn, Johannes (2011): Replication data for: Capital Income Taxes with Heterogeneous Discount Rates. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset.